A. The good is luxury
B. There are a great number of substitutes for the good
C. The good is a necessity
D. The good is an inferior good
Related Mcqs:
- Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?
A. relatively greater then
B. relatively less than
C. the same as
D. any of the above - Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?
A. relatively greater than
B. relatively less than
C. the same as
D. Any of the above - The demand for which of the following is likely to be the most price inelastic ?
A. transportation
B. taxi rides
C. bus tickets
D. airline tickets - The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?
A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic
B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.
C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.
D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change - Because supply and demand conditions for primary products are very price inelastic their prices ?
A. have been steadily rising in recent decades
B. have been more stable than the prices of manufactured goods
C. fluctuate about as much as the prices of manufactured goods
D. tend to be very unstable from year to year - if demand is price inelastic ?
A. An increase in price must raise profits
B. An increase in price decrease revenue
C. An increase in price increase revenue
D. A decrease in price reduces sales - If supply is price inelastic the value of the price elasticity of supply must be ?
A. infinite
B. Zero
C. less than 1
D. none of these
E. greater than 1 - Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
A. An fall in demand
B. An increase in supply
C. improvements in production technology
D. An increase in demand - The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
A. decreases unemployment
B. decrease growth
C. increases unemployment
D. decreases inflation - An increase in aggregate demand if aggregate supply is totally inelastic will ?
A. increase price but not output
B. increase output but not price
C. increase output and price
D. decrease output and price
